NYTimes: Why Apple Outsources Its Manufacturing to China [Video]

The New York Times has published an excellent piece on why Apple outsources its manufacturing to China. We recommend you read the entire article at the link below; however, here is a few highlights...

According to Apple executives, manufacturing overseas is their only option at this point. Why? Because no American plant can match what overseas manufacturers can offer. "The speed and flexibility is breathtaking," the executive said. "There's no American plant that can match that."

For Apple CEO Time Cook, the focus on Asia "came down to two things," said one former high-ranking Apple executive. Factories in Asia "can scale up and down faster" and "Asian supply chains have surpassed what's in the U.S." The result is that "we can't compete at this point," the executive said.


"The entire supply chain is in China now," said another former high-ranking Apple executive. "You need a thousand rubber gaskets? That's the factory next door. You need a million screws? That factory is a block away. You need that screw made a little bit different? It will take three hours."

As an example, the Times tells the story of how the iPhone came to have a glass screen:

In 2007, a little over a month before the iPhone was scheduled to appear in stores, Mr. Jobs beckoned a handful of lieutenants into an office. For weeks, he had been carrying a prototype of the device in his pocket. Mr. Jobs angrily held up his iPhone, angling it so everyone could see the dozens of tiny scratches marring its plastic screen, according to someone who attended the meeting. He then pulled his keys from his jeans.

People will carry this phone in their pocket, he said. People also carry their keys in their pocket. "I won't sell a product that gets scratched," he said tensely. The only solution was using unscratchable glass instead. "I want a glass screen, and I want it perfect in six weeks."


Steve Jobs' demand for a glass screen meant a last minute overhaul of the assembly line. The new glass screen arrived at the assembly plant near midnight and a foreman immediately woke up 8,000 employees in the company's dormitories.

Each employee was given a biscuit and a cup of tea, guided to a workstation and within half an hour started a 12-hour shift fitting glass screens into beveled frames. Within 96 hours, the plant was producing over 10,000 iPhones a day.

Check out the video below and hit the link to continue reading...

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